The language, explained simply
Plain-English guides to the terms that actually change how you trade. Tap any card to open it.
Put options
A bet that a price will fall
Explain like I'm 5
A put is like insurance on a stock. If you own something worth $100 and buy a put at $90, you can still sell at $90 even if it crashes to $50. You can also buy puts on stocks you don't own, as a pure bet that the price drops.
When it's a smart choice
When you think a stock will fall, or when you own shares and want a safety net through a risky event like earnings. Your maximum loss is just the price you paid for the put, which is why traders like the defined risk.
The risk
Puts expire. If the stock does not fall by the date on the contract, the put can become worthless and you lose everything you paid for it. Time works against you every single day.
Call options
A bet that a price will rise
Stop-loss order
Your automatic exit
RSI
Is it overbought or oversold?
Short selling
Profiting when a stock drops
Margin & buying power
Why $100k cash shows $400k to spend
By law these can lag the actual trade by up to 45 days — context, not a real-time edge.
Educational only. Options can lose their entire value. Understand a tool before you use real money on it.